The Drive to Economic Integration in Africa

In Africa there has been an immense effort in the past, continuing into the present, to unite politically and to build numerous economic integration areas. In this paper we discuss the reasons for the existence of this phenomenon in Africa which we call the drive to political and economic integration. Some conventional explanations are discussed. Our own explanation is based on the theory of bureaucracy and the imbalances emerging in the process of development. If Africa is ready for regional economic integration, it has to follow another path to this end: The path of centric integration.Economic Integration, Union, Bureaucracy, Centric Integration, International Relations/Trade, Political Economy, F15, P16, O18, O55,

Trade Effects of the East African Community

This article evaluates the trade effects of the new East African Community, which fosters trade liberalisation among Kenya, Tanzania and Uganda. The analysis uses a disaggregated approach at the two-digit level of the Standard International Trade Classification. The commodities that will be particularly affected by the customs union are identified. The results show that considerable trade effects cannot be expected, except for a very narrow range of products. The transitional fund, which has been proposed to counter trade imbalances due to the new customs union in East Africa, becomes less urgent from this perspective.Customs Union, EAC, Kenya, Tanzania, Uganda, International Relations/Trade,

Is it time for a world currency?

There have been several proposals to reduce the observed volatility of flexible exchange rates. The paper reviews two recent opposite views on the appropriateness of a common world currency for this purpose. Referring to an adequately formulated theory of world money, it is shown that there is presently no alternative to a flexible exchange rate system. This system might, under specific conditions, gradually evolve into a world monetary system with a global currency. Developing some structural principles of the world economy the paper also explains some hitherto unexplained features in the development of international monetary relations.Es existieren viele Vorschläge zur Reduktion der hohen Volatilität flexibler Wechselkurse. Im Papier werden zwei neuere, einander ausschließende Ansichten über die Angemessenheit einer Weltwährung zu diesem Zweck diskutiert. Auf Grundlage einer adäquat formulierten Theorie internationaler Währungen wird gezeigt, daß gegenwärtig keine Alternative zu einem flexiblen Wechselkurssystem besteht. Auf lange Sicht dagegen könnte jedoch zur Entstehung eines Währungssystem mit einer einzigen internationalen Währung kommen. Darüber hinaus werden einige weltwirtschaftliche Strukturprinzipien formuliert, die dazu dienen, einige bisher unverstanden gebliebene Entwicklungen in den internationalen Währungsbeziehungen zu erklären

Why do countries form regions? The political economy of regional integration

To understand the reasons for the formation of regional economic groupings two basic concepts are introduced: association and dissociation. Moreover, the importance of interest groups and strategic groups is discussed, and security and bargaining power as basic political motivations are evaluated. The paper also analyses some political economy arguments regarding the determinants of the size of economic groupings and the dynamics of their development through different stages. Finally it considers regional groupings as strategical coalitions with a deep impact on the future of the world economy.Um die Ursachen für die Entstehung regionaler ökonomischer Gruppierungen zu verstehen werden zwei grundlegende Konzepte eingeführt: Absonderung und bedingte Gruppenbindung. Darüber hinaus wird die Bedeutung von Interessengruppen und strategischen Gruppen diskutiert und Sicherheit und Verhandlungsmacht werden als grundlegende politische Motivationen bewertet. Das Papier analysiert ebenfalls einige polit-ökonomische Argumente hinsichtlich der Determinanten für die Größe ökonomischer Gruppierungen und der Dynamik ihrer Entwicklung durch verschiedene Stadien. Schließlich werden regionale Gruppierungen als strategische Koalitionen begriffen, die die Zukunft der Weltwirtschaft stark beeinflussen

Employment policies in developing countries

The ILO World Conference on Employment was held in Geneva from June 4 to 17, 1976 and after long discussions adopted an action programme which provided for quite a number of measures designed to ensure full employment in developing countries until the year 2000. The problems posed by a policy of full employment in developing countries are indicated in the following article which demonstrates that a change in the inherited power structures is a major prerequisite for an effective policy of full employment

Trade Imbalances and the Political Economy of a Transitional Fund in the EAC

The EAC is on the verge of establishing a customs union. But this is accompanied by fears that the Customs Union would lead to trade imbalances among the Partner States, which would create serious problems for the proper functioning of the Customs Union itself. To mitigate these problems the establishment of a transitional fund is proposed. Based on a study of the trade effects of the Customs Union it is shown that these fears are unfounded, and the establishment of a transitional fund to address imbalances therefore not necessary. Stakeholders views on the establishment of a transitional fund are also analysed to assess their influence on the integration policy in the EAC. The historical background of the fears of a customs union is described and it is shown how these fears continue to present time, in spite of changing economic conditions

Adjustment constraints in developing countries: A comparative study

The debt crisis of the eighties has compelled many developing countries to catch up on a painful adjustment backlog. In addition to traditional stabilization measures sponsored by the IMF, many countries are now acquainted with the structural adjustment programmes of the World Bank. Some have implemented these programmes successfully, others have terminated them after a short period or only partially completed them. What are the reasons for this

The drugs economy and anti-drug policy in developing countries

The drugs economy has now developed into a major factor in many developing countries. What effects on the economies of the countries concerned do drugs production and the drugs trade have? How should the prospects of success for substitution policies be judged? What strategy to curb the demand for drugs in the industrial countries might carry the promise of success

Adjustment policy and interest groups in developing countries

Adjustment programmes promoted by the IMF and the World Bank have met with mixed success in recent years. What part has the interaction of interest groups in the countries concerned played in this connection? What lessons are to be learnt for future adjustment programmes